Risk Assessment: CONTROL GROUP (UK) LIMITED

1. Risk Rating: HIGH

Justification: This company is in formal liquidation, has been balance-sheet insolvent since at least 2021, and has experienced a catastrophic erosion of net assets from £1.7M (2018) to negative £182K (2023). Both statutory filings are overdue. This represents a near-total capital destruction scenario with no realistic prospect of recovery given the liquidation status.

2. Key Concerns

Concern 1: Formal Liquidation Status

The company's status is recorded as "Liquidation," meaning a formal winding-up process is underway. This is the definitive red flag—control of the company's affairs has passed from the directors, and the business is being closed. Any investment consideration is moot; the relevant analysis shifts entirely to creditor recovery prospects.

Concern 2: Severe and Prolonged Insolvency

Net assets have been negative since at least FY2021 (£-41K), deteriorating to £-182K by FY2023. The trajectory is alarming:

Approximately £1.9M in shareholder equity has been destroyed over five years. The FY2020 data is absent, which itself warrants scrutiny given the magnitude of the decline between 2019 and 2021.

Concern 3: Critical Liquidity Position

Current assets of £218,474 against current liabilities of £545,359 yields a current ratio of just 0.40:1—drastically below the minimum healthy threshold. Trade creditors have more than doubled year-on-year (from £114K to £234K), suggesting the company was stretching payables before liquidation. Taxes and social security arrears of £150,593 represent a priority debt that typically attracts enforcement attention from HMRC.

3. Positive Indicators

Limited positive indicators exist given the liquidation status, but noting:

• Cash Position Improved: Cash increased from £13,789 (2022) to £58,153 (2023), though this may reflect timing of debtor collections rather than operational cash generation.
• Long-term Debt Reduced: Long-term bank loans decreased from £55,441 to £2,342, suggesting either repayment or reclassification to current liabilities.
• Tangible Asset Base: Net book value of tangible assets remains at £162,151 (primarily land and buildings at £94,075 and plant/machinery at £28,867), which may offer some recovery value for creditors, though realisable values in liquidation are typically below book value.
• Established History: The company was incorporated in 1985, indicating nearly 40 years of operating history prior to distress.

4. Due Diligence Notes

1. Missing Financial Year: FY2020 data is absent from the financial history. Given the massive decline between FY2019 (net assets £389K) and FY2021 (net assets £-41K), understanding what occurred in that intervening period is critical. This gap may coincide with COVID-19 disruptions.

2. Nature of Liquidation: Determine whether this is a creditors' voluntary liquidation (CVL) or compulsory liquidation. A CVL suggests the directors acted proactively; compulsory liquidation indicates creditor enforcement, which carries different implications for director conduct scrutiny.

3. Director Conduct: Investigate whether any insolvency proceedings have raised concerns about Wesley Zach Turney's conduct. The director loan of £13,195 present in FY2022 was written out by FY2023—clarify whether this was repaid or written off.

4. Debtor Collapse: Trade and other debtors fell dramatically from £328,567 to £154,420. Determine whether this reflects genuine collection, write-offs, or intercompany balances being eliminated.

5. Related Party Transactions: Two PSCs (Wesley Zach Turney and Darren Craig Turney) each own more than 75% of shares—a structure that requires explanation. Investigate whether asset stripping or preferential transactions occurred prior to liquidation.

6. Goodwill Amortisation: Intangible assets of £179,176 in goodwill are fully amortised. Clarify the acquisition history and whether any related-party acquisition preceded the decline.

7. Overdue Filings: Both accounts (due 31 March 2025) and confirmation statement (due 9 January 2025) are overdue. In liquidation, the liquidator assumes filing responsibility, but non-compliance adds administrative risk.